Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1413 entitled:

begs leave to report as follows:

The purpose of this measure is to extend from June 30, 2004 to December 31, 2004, authorization for the Department of Land and Natural Resources to expend the appropriation for the development of infrastructure at Kikala-Keokea.

The purpose of the project is to benefit residents of Kalapana displaced by volcanic eruptions on the island of Hawaii.

The measure also provides that the unexpended or unencumbered funds remaining in the infrastructure development fund are transferred to the credit of the Kikala-Keokea housing revolving fund as of close of business on December 31, 2004, instead of June 30, 2004.

Your Committee finds that funding commitments to complete the design and construction of infrastructure improvements in the Kikala-Keokea subdivision have been agreed upon in a Memorandum of Agreement between the Office of Hawaiian Affairs and the Department of Land and Natural Resources. The parties are in the process of obtaining the necessary permits and predict construction to be completed in December 2004. Without this measure, the funds appropriated could not be expended to complete the project.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1413 and recommends that it pass Third Reading.